Karen Nettleton, the mother-in-law of Islamic State terrorist Khaled Sharrouf, believed killed last year, says she has sent money to her starving grandchildren in Syria in a desperate bid to help them.

Meanwhile, unconfirmed reports have emerged that Sharrouf may still be alive.

Karen Nettleton says her grandchildren are trapped in Syria and starving.

Photo: Kate Geraghty

Ms Nettleton said she had sent her five grandchildren and one great-grandchild money for food and water. But the children had yet to collect the money because it was so "dangerous" to go out.

The Australian Federal Police were informed about the money before it was sent.

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Sydney woman Karen Nettleton pictured with two of her grandchildren who are now trapped in Syria.

Photo: Supplied

Ms Nettleton said her oldest grandchild, Zaynab, 15, had told her by text message that there is a lot of bombing and the strikes are targeting cafes with Wi-Fi, so it is hard to communicate. She said Zaynab had told her she has not yet been able to pick up the money.

Fairfax Media reported on Wednesday that the children's mother, Tara Nettleton, 31, had died in Raqqa on September 21 last year from complications following surgery for appendicitis. It is understood she was unable to access life-saving health services.

Sharrouf slipped out of Australia in December 2013, using his brother's passport, and joined Islamic State, meeting up with his friend and fellow terrorist Mohamed Elomar. Tara and their children followed via Malaysia and Turkey soon afterwards.

Sharrouf was reportedly killed during targeted air strikes in Syria last year along with Elomar, who was married to Zaynab.

Elomar was confirmed dead but reports about the death of Sharrouf could not be verified.

At the time, Zaynab, who has since had a baby daughter to Elomar, posted a cryptic tribute to the two men online following news of their suspected death.

Ms Nettleton said on Saturday she was shocked to hear that Sharrouf might still be alive and questioned the report. She said despite everything, he loved his children very much, and would be helping them if he was alive.

Ms Nettleton said she is calling for any practical help, either national or international, to get her grandchildren to safety.

"They are just children, innocent children, and they are victims in every way. They are doing the best they can to survive. But they are so desperate, they need money to buy food.

"If there is anything that can be done, please help," she said. "I can't bear the thought of them being over there without their mother."

Ms Nettleton's lawyer, Charles Waterstreet, said there was a lot more to the story and "when the truth comes out, Tara will be seen as a hero and not as a woman of no substance".

A spokeswoman for the Department of Foreign Affairs and Trade said, "We are not able to confirm reports that Khaled Sharrouf is either alive or dead in Syria or Iraq, which are both listed as 'do not travel' destinations in our travel advice."